What a Difference a Year (or Two) Makes

Chart of the Week for November 18-November 24, 2005

When considering the performance of an index, it is helpful to see its returns across multiple time periods. The above chart provides the annualized rates of return for several equity market indices for three, four and five years ending October 31, 2005. While the three and five year numbers are pretty standard periods for performance presentation, the four year is not. We've included it because of the insight into what is happening between the 60 month and 36 month returns.

The five year returns capture much of the recent bear market performance, and so are significantly lower than more recent time periods in which the market has bounced back. In fact, the five year return, which covers November 2000 through October 2005, is about to roll off a particularly notable month of negative returns, November 2000. If the market recovery continues and the negative returns of the past continue to be swept away, we will start to see stronger numbers for four and five year periods.

* This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing. Past performance does not guarantee future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 1-800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240, or by visiting www.icmarc.org. Please consult both the current Vantagepoint Funds prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights and investment objectives, risks and performance information prior to investing any money. Vantagepoint securities are distributed by ICMA-RC Services LLC, a broker dealer affiliate of ICMA-RC, member NASD/SIPC. For a current prospectus, contact ICMA-RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400. AC: 1105-35